It is thought to have been considering a launch for the past couple of months, with the fund likely to be run by its global resources team.
Firms to have brought out agricultural funds in the past couple of years include Eclectica, Sarasin and most recently Schroders.
Hargreaves Lansdown investment manager Ben Yearsley says: “First State is well known in the alternatives’ space, with a team that is good at studying commodity companies.
“It is well placed to bring an agricultural fund to market, if that is what it decides to do, but it may need to extend its team to accommodate a launch.”
Chelsea Financial Services managing director Darius McDermott says: “It has one of the leading teams in resources so the launch of an agricultural fund would not be a surprise.”